Welfare Reform Bill


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Mr. Ruffley: We are listening to the hon. Lady’s contribution with interest but also a bit of alarm. I am very surprised to hear that there is not more strategic thinking to identify conditions that might be prevalent in her area and to work out what form of training package might fit the needs. I am staggered and disappointed to hear about the various public bodies, whose job is to think strategically and answer the hon. Lady’s exact questions. Will she say a bit more about the issue?
Natascha Engel: I welcome the hon. Gentleman’s intervention. I deliberately painted a rather bleak picture to highlight the problem. We can make national legislation and produce a good national legislative framework for the system to exist in, but only local delivery matters. Lots of different public, private and voluntary organisations are doing some of that work.
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The city strategy brings all of that together in a coherent manner, which may not be true in rural areas, and I am worried about the difference between the rural and the more urban. We have organisations that do a wonderful job in identifying skills needs, and we have a rather large employment-creating project on our doorstep, which is fantastically exciting, but even though we are thinking strategically and considering future skills needs, that is not strategic enough. We are doing all that against the backdrop of the accession eight countries, which presents one of the biggest problems that we face in rural areas. I would welcome the Minister’s comments on all of those points.
Mr. Boswell: I am pleased to follow the hon. Lady, who made some interesting and helpful contributions, the first of which was to bring a degree of enthusiasm to a subject that deserves more than cynicism. We need to realise that the Bill is about real people whom we are trying to help. That is not an unworthy aim for politicians. It is sometimes unnecessary to claim that, but it is still important to feel it.
The hon. Lady stood up for rural areas. She will not be surprised if I respond to her on that. I know something of the coalfield communities, and I think that she made the point, by implication, that not all rural areas are affluent, and that they have difficulties. I was recently reading the report of the Government’s new rural advocate, Dr. Stuart Burgess, which says that there are problems with the ability to access a proper range of services, with transport, and with other issues we have discussed. I agree that, however well things are done at the centre, it sometimes seems as though the rural areas are somewhat in default. Will the Minister spend a moment of the Committee’s time talking about his approach to the projection of the system into rural areas?
The hon. Lady also talked about skills. I could join her in doing that and talk enthusiastically for the rest of the day on that subject, which is central to the debate. We have debated medical and quasi-medical conditions, but the issue is wider than that. All the work that I have seen, which includes the work of the National Institute of Adult Continuing Education, shows that participation in education, in the widest sense of the word—not necessarily narrowly vocational-specific activities, but activities from literacy to leisure and pastimes—is good in itself and good for people’s health. It involves interaction and affects confidence. The Minister will appreciate this, but we need to keep saying it: it is important that his Department and the Department for Education and Skills and others work together on these matters.
My hon. Friend the Member for Bury St. Edmunds rightly asks, is not all that happening? In a sense, formally it is, but the hon. Lady is right to put up her hand and say, “This really does matter in rural areas, and we have to be involved in it,” particularly where there are patterns of morbidity, distance and exclusion from the labour market, which there will be in some areas. I can find a few of my own that are not too clever.
The hon. Lady’s final point, about volunteering, is the one she made best. That is because of the enthusiasm with which she expressed her remarks. She talked about Derbyshire Dave, who wanted to get on with things and was prepared to do everything, but somehow the services did not come along. The important point is that he was fired up to do something. It occurs to me that the whole clause is about the negative, such as regulations and the conditions under which sanctions can be applied. Most of the debate has been not about the negative, but about helping people. I hope that it will stay that way.
I return to something that we have debated before, and make the only other point that I want to make on this clause. Many enthusiastic people who are already on incapacity benefit would like to work if the opportunity arose. That is where we start. Others—we have discussed them at some length during our debate on this clause—might not want to join the party and might ultimately come at least within the ambit of the idea of sanctions.
It seems important that we should emphasise the positive, not the negative, and one of the most important things is the individual’s motivation. Sadly, some people within the support allowance category will find it difficult to return to the labour market, and by definition no one in that category will find it easy. On the other hand, if they are willing volunteers they should be actively encouraged. Other people within the employment allowance category will be less active and less keen, and if resources are not unlimited—we will not reopen that issue—it may be important for Jobcentre Plus or the private contractors to go out to look for people who actively want to participate. A simple rubric that I will leave with the Committee is that it might be better, rather than having a conscript on the employment allowance, to have a willing volunteer on the support allowance.
Danny Alexander: I want to follow the comments made by the hon. Members for North-East Derbyshire and for Daventry, and to underscore for the Minister the importance of delivering such services and supporting people when they undertake work-related activity in rural areas. I represent some 5,000 square miles of the highlands and isles of Scotland, where the distances and—less so, these days—weather conditions, such as severe cold weather, make the strategic co-ordination of such activities incredibly difficult. I understand the point that the hon. Member for North-East Derbyshire made. In some ways, it is even stronger if one is talking about a few people up a mountain track up the Cairngorm mountains or Monadhliaths who, in some circumstances and because of a range of disadvantages, would be unable to take part in activities that are being promoted through a city strategy or any other urban-centred strategy. It is critical to reflect on the needs of people in sparsely populated rural areas, as I am sure the Minister will agree.
I am delighted that the Minister has come to Inverness to visit the “Unlock Your Potential” project, a joint effort between the SHIRLIE project, which is an extremely well-respected and successful voluntary organisation that promotes supported employment, and Jobcentre Plus in the highlands. Jobcentre Plus has shown commendable innovation in coming up with the ideas around the scheme. It is trying to deliver the sort of joined-up thinking in sparsely populated rural areas that the hon. Lady referred to. I hope that the Minister will confirm that that is part of the Government’s wider thinking for rural areas.
Mr. Murphy: I will try to respond briefly to the reasonable points about skills and the wider debate that we have not as yet touched on. I will be quick.
My hon. Friend the Member for North-East Derbyshire mentioned the importance of training and skills. To drive out poverty in a family, we need not only to get people into work but to sustain them in work and to enhance their skills. There is evidence that the most effective way to enhance skills is while someone is in work rather while they are out of work. The hon. Member for Daventry knows about these issues. I am not trying to belittle anyone who is taking other routes and engaged in other activity, but analytically work is the most effective place for a customer to be to enhance their skills.
My hon. Friend the Member for North-East Derbyshire is right to say that Sandy Leitch is working on a review at the Treasury’s behest. I had the opportunity to meet him along with my right hon. Friend the Secretary of State to discuss his emerging thinking and to seek to influence some aspects of his conclusions. I am happy to report that there is nothing that my hon. Friend has said today that Sandy Leitch would not agree with—I base that on my conversations with him. It is important to mention his work, and of course he will come to his own conclusions in his own time.
We may wish to reflect at another time on the role of skills coaches as well as personal advisers. On rural poverty, I would be happy to visit Inverness the next time that my family and I go to the excellent Conon Bridge hotel, which is in that part of the world. I do not know whether it was appropriate to say that, or to talk about its cheap weekend breaks. Anyway, the next time I am there with my family, I will—with my family’s indulgence, of course—take the opportunity to visit the projects that the hon. Member for Inverness, Nairn, Badenoch and Strathspey mentioned.
On rural poverty and the rural dimension, there are all sorts of issues to do with transport. People in rural areas, particularly young folk, identify it as a key issue in respect of their connection to work and the opportunity to get out of poverty or to advance their aspirations. I was reminded of that again on a relatively recent visit to Jamie Oliver’s restaurant Fifteen in Newquay. The trainees there identified the importance of transport in a rural environment. It enables them to get to their workplace and to maintain themselves in work.
The cities strategy is important. It is about a consortium of people who have shared aspirations and a determination to work together. I have already mentioned Wales, which, to its credit, has stolen a march on the rest of the United Kingdom. In the rest of the UK, the strategy will be rolled out in the cities, but in Wales, as I have said, it will be rolled out in the heads of the valleys and in Rhyl. I do not know all the topography and terrain of that part of the world, but I do know that those places are not as yet major cities. We will have an opportunity to learn from the experiences, co-operative working and innovations of the consortiums, particularly in Wales, and use that knowledge in a further roll-out of the cities strategy. With those remarks, I invite the Committee to agree that clause 12 stand part of the Bill.
Question put and agreed to.
Clause 12 ordered to stand part of the Bill.

Clause 13

Action plans in connection with work-focused interviews
Danny Alexander: I beg to move amendmentNo. 157, in clause 13, page 12, line 1, after ‘plans’, insert—
‘( ) requirements on employers’.
The Chairman: With this it will be convenient to discuss the following amendments: No. 38, in clause 13, page 12, line 2, at end insert—
‘(d) the role of a person to whom an action plan document is provided in determining its content;
(e) the requirements that must be met by any such person, or employees of such person receiving authorisation under section 15(1) in assisting a person to whom an action plan is provided;
(f) the right of person to whom an action plan is provided to appeal against its contents.’.
No. 143, in clause 13, page 12, line 6, at end insert—
‘(3A) Regulations under this section may make provision for action plans to include requirements to be placed on the Secretary of State, or any person authorised to carry out functions on behalf of the Secretary of State under section 15.’.
Danny Alexander: I will try to be relatively brief. All three amendments relate to the action plans and raise concerns which I hope the Minister will address about how the action planning process will operate.
Amendment No. 157 goes back to a debate that we had earlier, so I shall not dwell on it too much. However, it is important to talk a bit more about the requirements on employers. In a debate last week, the Minister said that engagement with employers is essential because, in the main, the Government do not create jobs. But he also implied that the Government themselves should be doing more as an employer to engage with the sorts of people we have been discussing.
Can the Minister expand a wee bit on what role he thinks the Department for Work and Pensions and other central Government Departments could have as employers, and whether they will have a role in recruiting people from incapacity benefit, or from employment and support allowance, as it will be?
Another key question is how any employer engagement undertaken by the Department or, indeed, by contractors on behalf of the Department—delivering pathways to work, for example—will relate to the action plans that will be drawn up for individuals. Is it the Minister’s thinking that within the action plans reference could be made to the role that employers will play? That is the substance of the first amendment. The burden of one of the other amendments is that the action plan is not just about the individual. It is about what the personal adviser can do to help an individual and what potential employers might do in the context of the individual action plan.
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Amendment No. 38 is about safeguards in relation to the reconsideration of an action plan. Subsection (4) provides that an action plan can be reconsidered under certain circumstances to be specified in regulations. Will the Minister assure us that an individual who is the subject of an action plan will have the right to request a change to it, or to withdraw it completely and to ask for a fresh one to be drawn up if circumstances change?
Amendment No. 143 is intended to probe the Government’s definition of the “prescribed circumstances” in which a person will be provided with an action plan document. With those brief words, I invite the Minister to spell out his thinking.
Mr. Hunt: I wish to speak to Amendment No. 157, which is on requirements on employers. A concern that many people have about the Bill is that there is not enough in it about how we will improve communications with employers, who are an important part of the equation. Both Ministers will be aware of statistics that show that there is still a huge amount of discrimination by employers. Some 38 per cent. are not prepared to take on anybody with any disability, and63 per cent. are not prepared to take on someone with a background of mental illness. It is important to involve employers in the process, and the amendment suggests that requirements on employers should be part of the action plan.
We have had Sheffield Dave and Derbyshire Dave; may I mention Tunbridge Wells Tim? I have changed his name, because I do not want to put his real name on the record. He suffered an acquired brain injury when he was a teenager when he stepped out of a bus and was mown down by a car that was moving very fast alongside it. He was in a coma for many months. The result is that he has a learning disability that will be with him for the rest of his life. He was supported brilliantly by Kent Supported Employment, which did a fantastic job of placing him in a job. He tried several times to get a job, but he was open about his learning disability and was not interviewed. Then he applied for a job at the Odeon cinema in Tunbridge Wells andwas supported considerably by Kent Supported Employment. He did not mention his learning disability, but as soon as he was invited for an interview Kent Supported Employment contacted the Odeon and explained the situation. The Odeon staff were very willing to see him and he is now doing a brilliant job in that cinema.
When I went to the cinema and spoke to people about it, I asked the staff about the challenges involved. They mentioned the role of the personal advisers who help disabled people to get into employment. They said that it is crucial, and they gave an example. Tim was serving ice cream and some of it dropped on the counter. He started to eat the ice cream that had been dropped. Had they not known about his disability, that would have been a sackable offence. He would probably not still be working there. The excellent relationship that the cinema had developed with the advisers meant that they were able to deal with the situation. As a result, his prospects there are going from strength to strength. That is a good example of why involvement with employers, including, as the Minister rightly said, the Government’s involvement, is incredibly important.
I turn to the comments made by the hon. Member for North-East Derbyshire. There are some brilliant employers—parts of BT, Asda and Royal Mail—that do an excellent job. However, they say that they have been driven to do so by labour market shortages. It made them consider tapping into another labour market: people who have a limited capability for work.
BT has found that disabled employees save it a lot of money. It costs the company £3,000 to £5,000 to employ someone, and if it keeps someone for longer, it saves money. BT found that the retention rate after one year for disabled employees was almost 10 per cent. higher than for non-disabled employees.
There are good stories, but the unemployment trajectory is firmly upward. The hon. Lady also raised the issue of accession states.
 
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Prepared 27 October 2006